Vodafone Idea takes a revival turn, net loss narrows to Rs7,219cr in Q2FY21 with ARPU improving to Rs119

The company had posted a net loss of Rs50,921.9cr a year ago same period, and Rs25,460.2cr in the previous quarter.

Oct 30, 2020 04:10 IST India Infoline News Service

Quarterly Results
Telecom service provider, Vodafone Idea's consolidated net loss narrowed to Rs7,218.5cr for the quarter ended September 2020 (Q2FY21). The company had posted a net loss of Rs50,921.9cr a year ago same period, and Rs25,460.2cr in the previous quarter. On Friday, the company's stock finished at Rs8.75 per piece higher by 4.42% on Sensex. The stock gained by over 6% with an intraday high of Rs8.92 per piece in early deals. 

Vodafone Idea's revenue from operations stood at Rs10,791.2cr in the quarter under review, higher from Rs10,659.3cr of the preceding quarter, but slightly down from Rs10,844cr in the corresponding quarter of the previous year.

Ravinder Takkar, MD & CEO, Vodafone Idea Limited, said “As we reach the end of our integration journey, we have become the fastest and most consistent 4G network of India, as validated by Ookla, a testimony to our superior and improved 4G GIGAnet network covering 1 billion Indians. We have launched our new unified brand “Vi”, built on the legacy of two of the most loved brands of the country, and are all set to regain customer mind share."

Further, in the quarter, Vodafone Idea witnessed a decline in subscribers base to 271.8 million from 279.8 million in Q1FY21. However, the gross additions improved with gradual reopening of retail stores. The subscriber churn increased to 2.6% (vs 2.0% in Q1FY21), as the market activity increased during the quarter with lifting of restrictions. ARPU for Q2FY21 improved to Rs119 compared to Rs114 in Q1FY21.

As of September 2020, the company's 4G subscriber base stands at 106.1 million (vs 104.6 million in Q1). The data volumes declined by 4.0% QoQ, as data usage normalised compared to the significantly higher volumes witnessed during the early months of lockdown. Total minutes on the network declined by 4.0% during the quarter.

Takkar added, "While we continue to face COVID-19 induced challenges, Q2FY21 showed signs of recovery with a gradual improvement in economic activities. We are executing on our strategy and our cost optimization exercise has already started to yield incremental savings. We have also initiated a fundraising exercise to support our strategic intent. Further, we continue to interact with the government seeking long term solutions to the critical challenges, which the industry faces.”

The company highlighted about Indus Tower and Bharti Infratel merger. The company said, VIL will monetize its 11.15% stake in Indus on completion of the merger. The value of VIL’s 11.15% stake equates to a cash consideration of approximately Rs3,800cr  ($ 520 million) currently. The final determination will take place shortly before closing of the merger.

Also, the company said, VIL has agreed to make a prepayment of Rs. 24 billion to the merged tower entity from the cash consideration to be received from Infratel at the time of closing. The prepayment amount will be adjusted to the extent of 50% of all undisputed and due amounts payable by VIL to the merged tower entity post-closing and VIL will be required to pay only the balance 50% of undisputed dues. The prepayment amount will accrue interest at 6% p.a. This will continue until the entire prepayment amount with accrued interest is fully adjusted.

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